City Council Workshops

1. City Council Budget Workshop Agenda Documents: 2017-03-18 CITY COUNCIL BUDGET WORKSHOP AGENDA.PDF 2. City Council Budget Workshop Other Budget Related Issues Bw II Documents: 2017-03-18 CITY COUNCIL BUDGET WORKSHOP OTHER BUDGET RELATED ISSUES BW II.PDF 3. City Council Budget Workshop Minutes Documents: 2017-03-18 CITY COUNCIL BUDGET WORKSHOP MINUTES.PDF  CITY OF WHEATON, ILLINOIS BUDGET WORKSHOP SESSION – SATURDAY, MARCH 18, 2017 – 9:00 A.M. WHEATON CITY HALL, COUNCIL CHAMBERS, 303 W. WESLEY STREET, WHEATON, IL AGENDA I. Review of 2017-2018 Draft Budget a. Municipal Band b. General Fund-Wireless Alarm Network c. Debt Service Fund d. Liability Insurance Fund e. Health Insurance Fund f. Fire Pension Fund g. Police Pension Fund h. Capital Projects i. Capital Projects Fund ii. Motor Fuel Tax Fund iii. TIF #2 Fund iv. Water Fund v. Sanitary Sewer Fund vi. Storm Sewer Fund vii. Parking Fund II. Other Budget Related Issues a. Comprehensive Plan Update-Roosevelt Rd b. Redevelopment Grant Program (Replace TIF #1 Funding) c. Adams Park Plan III. Public Comment IV. Council Questions, Comments, Other Issues Regarding Draft Budget V. Adjournment Persons speaking during Public Comment shall not speak longer than three (3) minutes and shall be permitted to speak only once.  emorandum Michael G. Dzug City Manager TO: The Honorable Mayor & City Council DATE: March 14, 2017 SUBJECT: Miscellaneous FY 18 Budget Expenditures This memorandum provides information relating to four expenditures that have not been included in the drafi FY 18 Budget. All four of the additional expenditure items, if authorized by the City Council, would be included in the General Fund. The staff is seeking the Council’s direction on the following additional expenditure items: 1. $40,000 - Downtown Wheaton Association supplemental funding. 2. $20,000 - Downtown Retail Grant Program (replacing TIF I funding). 3. $50,000 - Comprehensive Plan Update for Roosevelt Road. 4. $25,000 - Adams Park Landscape Plan. 1. $40,000 Downtown Wheaton Association Supplemental Funding - Exhibit A includes a five-year distribution history of Special Service Area #7 and supplemental funding provided to the Downtown Wheaton Association. As you note from the distribution history, the Special Service Area #7 in the levy year 2011 (FY 13) was generating almost $206,793 to the DWA. In the tax levy year 2012 (FY 14), property assessed values dropped significantly in the downtown and throughout the City, which impacted the dollar amount received by the DWA from the Special Service Area. That decline continued in the 2013 levy year. To reestablish the funding level back to the $206,793 amount, the Council agreed to supplemental funding in FY 15, FY 16 and FY 17. For the 2016 tax levy year (FY 18), the Council adopted a levy that would produce an estimated $176,312, which is a 3.1% increase from the 2015 levy. If you include the $40,000 supplemental funding, total funding for FY 17 is $211,033, and should the Council approve the $40,000 supplemental funding for FY 18 total funding would be $216,312. 2. $20,000 Downtown Retail Grant Program - TIF 1 expired on December 30, 2016. One of the programs that was funded on an annual basis through TIF 1 revenue was Downtown Property Improvement Programs, including storefront grants and downtown retail grants which targeted retail businesses in the downtown completing expansion projects. Only properties within the TIF 1 boundaries were eligible. Attached as Exhibit B is a description of those programs and a map of TIF 1. The proposed FY 18 Budget for TIP 2 does include a continuation of the Downtown Property Improvement Programs. However, with the expiration of TIF 1, the staff did not include the continuation of these programs for the properties within TIF 1 since General Fund monies would be needed to fund such projects within the old TIF 1 boundaries. I am concerned with using General Fund revenue to support storefront improvement and/or retail expansion projects only within a defined area in the downtown. 3. $50,000 Roosevelt Road Comprehensive Plan Update - A few recent redevelopment projects along Roosevelt Road have prompted a question as to the validity of current Comp Plan provisions as they relate to Roosevelt Road. More specifically, the Comp Plan’s section on Special Focus Areas, East Roosevelt Road Corridor Study and the Limited Commercial Designatiom Office/Service area for Roosevelt Road properties. Included as Exhibit C are sections from the Comp Plan relating to Roosevelt Road. Planning & Economic Development Director Kozik has estimated $50,000 to engage the services of a planning consultant to reevaluate the corridor. Mr. Kozik has suggested a specific analysis of Roosevelt Road from the City’s current east boundary to Canton Avenue. Given the uniqueness of the properties fronting Roosevelt Road, particularly the lack of lot depth and adjacency to residential properties, the outcome of a Comp Plan update for the Roosevelt Road Corridor is likely to produce very similar recommendations. With the Comp Plan being 18 years old a fresh look at the land uses (current market review) that may be appropriate and consistent with the attributes of the Roosevelt Road properties may be beneficial. A more focused look at market/uses would be less expensive than a full Comp Plan update for the Roosevelt Road corridor. 4. $25,000 Adams Park Landscape Plan - The City’s Parks Division, Public Works Department, has managed and maintained Adams Park since the early 80’s. The City does not have a fonTlal landscape plan for guiding the management or regular maintenance of Adams Park. Sometime in the mid 1960’s, a landscape plan was prepared for Adams Park by Anthony Tyznik. Mr. Tyznik was the chief landscape architect for the Morton Arboretum. However, the Tyznik plan was not implemented as originally designed and is not used as a basis for guiding management or maintenance of the Park, although certain elements of the Tyznik plan are included in the Park. Given the fact that the brick paver paths need to be reconstructed and the fountain area is also in need of reconstruction, the staff thought it may be appropriate to have a landscape plan completed for the Park so that the developed plan could guide the City’s management and maintenance of the Park. Attachments  EXHIBIT A City of Wheaton DWA Distribution History 03/15/17 Property Taxes Supplemental Levy Fiscal SSA #7 TIF #1 TIF #2 TIF #2 {1) Funding Total Year Year 14000010-64100 27140010-64100 27240010-64100 272-14000 14000010-64100 Amount 2011 2012/13 $ 87,530.87 $ 26,624.52 $ 92,637.70 $ - $ - $ 206,793.09 2012 2013/14 $ 84,300.81 $ 24,974.89 $ 65,034.96 $ (2,495.16) $ - $ 171,815.50 2013 2014/15 $ 82,103.59 $ 22,569.15 $ 60,255.12 $ (3,733.32) $ 41,000.00 $ 202,194.54 2014 2015/16 $ 81,450.41 $ 22,044.77 $ 64,088.15 $ (3,733.31) $ 40,000.00 $ 203,850.02 2015 2016/17 $ 82,120.76 $ 22,327.47 $ 70,318.66 $ (3,733.32) $ 40,000.00 $ 211,033.57 2016 2017/18 $ 106,210.90 $ - $ 73,834.61 $ (3,733.31) $ 176,312.20 (2) 2017 2018/19 $ - $ - $ - $ (3,733.28) $ (3,733.28) $ 523,717.34 $ 118,540.80 $ 426,169.20 $ (21,161.70) $ 121,000.00 $ 1,168,265.64 (1) 2011 Levy Refund $21,161.70 due to Wheaton Property Partners (120 E Liberty) assessment appeal. (2) Estimated property tax distributions Final amounts will not be received from the County until late May C:\Users\mgd\Desktop\DWA Distribution History.xlsx\DWA payment history (2)  EXHIBIT B Downtown Property Improvement Programs The City’s Downtown Property Improvement Programs were created to encourage downtown property owners and tenants to create and maintain attractive, high-quality exteriors. The programs provide incentives for owners/tenants to renovate their exteriors through grants that fund painting, cleaning, tuck pointing, façade repair, window repair, replacement signage and other permanent improvements. This program reimburses an applicant for ¼ the cost of the improvement, up to $2,500 for each “storefront”. The program defines a “storefront” as a 25 foot length of a building façade; i.e. a 50 foot wide building has two “storefronts”. Grants are approved on a first come, first serve basis until the budgeted funds are depleted. The City also has a Downtown Wheaton Retail Grant Program designed to attract targeted retail businesses and to assist existing businesses in downtown Wheaton with expansion projects. Examples of acceptable expenditures include: build out of space, building code improvements, first three months of rent (existing business must move into a new space in a TIF district or expand their existing space), moving expenses, visual merchandising, retail consulting or licensed space designer (ASID). This program reimburses an applicant ¼ the costs of the improvement, up to $10,000. Grant requests are reviewed and approved by a committee comprising of the City Council representative to the DWA, the DWA President, and the DWA Executive Director. Grants are approved on a first come, first serve basis until the budgeted funds are depleted. In the past four years, the City approved grants totaling $112,804.43 for properties located within TIF #1 with a low expenditure of$12,661.25 in FY 15-16 to a high of $46,019.68 in FY 14-15, with an average over the last four fiscal years of $28,000. Past grant recipients in TIF #1 include the DuPage Art League, Choun’s Gia Mia, Mile Long Records, Carison’s Glass, Sogno’s rooftop deck, Best Way Rug, façade repair at 214-2 16 W. Front Street, Adelle’s, and Bella Roba.  7808 80 Ca Cl)L.) - 20 Oc$ 0 r .5.0) - 115 716 712 D 712 5 -4 - 708 7Q7 TQ8 0 U, Cl) C.) Cl) .5.0-5. Cl) %) Cl) 00 0) CY Ol) (0 (l) 530 703 — (D 5 ebpu CD CD CD c>j seaj 703 4,,/ 301 - -‘ .0- .0- 4I. .0- 403-409 655 657 0- 7)53 652 -- 400 648 649 - 5 —4 •0• 630 6l /8 44 401 / 623 / •s21 622 50 (0 616 619 / /617 616 C :z 615 2. 608 Cl) 0 620-622 / / 612 —-. C.) Cl) Cl) C.) 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C4 2’ 3. 22 • 0(2 TI.) .‘ 232 234 ScottSt 0 221 30 302 0- 5.5. 240  EXHIBIT C East Roosevelt Road Corridor Roosevelt Road stress that the continued viability of their business is dependent on their ability to Commercial roadway corridors serve multiple expand their use. However, many commercial purposes. Most corridors are important parcels have shallow depths, resulting in mid-block transportation routes that link communities to other transitions between commercial and residential parts of the region, and often accommodate high zoning. Expansion plans have met resistence from volumes of traffic. Many are also major economic adjacent and nearby residents expressing concern contributors to the municipal tax base by providing over the impact of commercial uses on their access to a wide range of land uses. Corridors are neighborhood and property values. often one of the most visible parts of a community, and can be a major factor in how a city is Housing issues of overcrowding, lack of open perceived. As such, highway corridors have space, safety, parking and general poor appearance competing or conflicting functions. have plagued several older multiple family complexes along East Roosevelt. Given the limited The City must evaluate long term redevelopment opportunity for expansion of the City’s tax base, the policies for Roosevelt Road. Business owners with impact of increased traffic on Roosevelt Road and properties along Roosevelt Road stress that the other concerns mentioned above, redevelopment of continued viability of these uses is dependent on several existing residential sites is the best long term their ability to expand, both in size and land area use of these properties. Since many of the multiple coverage. Most commercial parcels have shallow family structures represent some of the few low cost depth, resulting in mid-block transitions between housing opportunities in the City, elimination of commercial and residential zoning. Expansion plans these units should be conditioned upon a plan to have met resistence from adjacent and nearby provide equivalent housing to keep these residents residents expressing concern over the impact of within the Wheaton area. commercial uses. Concern has also been voiced over the potential conversion or removal of existing Maintaining and enhancing existing residential homes along Roosevelt Road to commercial use, structures which have architectural, historical or such as has been permitted for the Wheaton Inn. cultural significance, or which are viable for commercial use, is an important element in creating Overcrowding, lack of open space, safety, parking an attractive corridor. These types of structures and general poor appearance have plagued several (such as the building at the northwest corner of older multiple family complexes along East Roosevelt and Washington) should be reused for Roosevelt. Given the limited opportunity for limited commercial and office purposes, ratherthan expansion of the City’s tax base, the impact of be torn down. increased traffic on Roosevelt Road, and other concerns mentioned above, redevelopment of In order to ensure a solid tax base, commercial existing multiple family sites may be the best long (re)development along Roosevelt Road should be term use of these properties. This would, however, encouraged at appropriate locations identified on result in the elimination of dwelling units that the Land Use Plan, page 37. Constrained by limited represent some of the few low cost housing depth and adjacency of parcels on the north side of opportunities in the City. Roosevelt Road to single family homes, the predominant land use should be limited to Overall Development Strategy office/research because of the less intensive nature and reduced parking need of this use. With limited new economic development potential, the long term land use plan for Roosevelt Road retains and enhances, where necessary, existing businesses. Business owners with properties along City of Wheaton 01999 Comprehensive Plan Update 49 When redevelopment or expansion occurs, a several multiple family parcels are identified for landscaped buffer yard, with dense evergreen reuse as commercial or office buildings. Vacant screen and berm, should be required to mitigate the property on Taft Avenue is recommended for a impact of commercial uses on adjacent residential local neighborhood park/tot lot to serve areas. This buffer yard may be reduced if a solid residents in the immediate vicinity. fence is provided, with the condition that the landscaping shall be placed on the residential side Development Opportunities: of the fence. Buffer yards shall be exclusive of buildings and parking areas. North side: Total Acres 0.5 = Building Potential = 5,000 sq. ft. Specific recommendations for this corridor are (1 floor) provided below: (See Exhibit 8, p. 51 Land Use Plan) South side: Total Acres =1.0 Building Potential =10,000 sq. ft. Naperville Road to Chase Street (1 floor/each building) Existing Land Uses and Zoning: Uses are primarily office (OR) and single family (R3, R4) Blanchard to Iorraine Streets residential, with a large church on the south Existing Land Uses and Zoning: A mixed use side of Roosevelt Road and commercial (C3). area dominated by a balance of office (OR) and commercial uses (C3), with three single family Proposed Land Uses: Provide for new office homes on the north side of Roosevelt Road development on the north side and limit (R7), two multiple family buildings at the expansion of existing office uses on the south northeast corner of Blanchard Street (R7), and a side of Roosevelt Road. Retain commercial use five building complex at the northwest corner at southwest corner of Chase Street and of Lorraine Street CR7). Roosevelt Road. Proposed Land Uses: A balance of office and Development Opportunities: commercial development, with new redevelopment opportunities located on the North side: Total Acres 3.5 = north side of Roosevelt Road. The City should Building Potential = 78,000 sq. ft. encourage the conversion! redevelopment of (2 floors) existing, small residential structures to commercial businesses, as the residential units Chase to President Streets are an underutilization of the property. Existing Land Uses and Zoning: Uses are primarily commercial (C3) with one office (OR) The designation of the multiple family units at use at northeast corner of Chase Street. the northwest corner of Roosevelt and Lorraine Street as a future commercial use is intended to Proposed Land Uses: No change. eliminate overcrowded and poor building and site conditions. In the interim, the City should Development Opportunities: No change. explore the possibility of working with the property owner(s) to eliminate parking within President to Blanchard Streets the front yard by purchasing the vacant Existing Land Uses and Zoning: Mix of property immediately to the west for off-street moderate to high density residential (R6, R7), parking.The northern block face of Taft Avenue, office and auto related commercial (C3). with the exception of the lot at the northwest corner of Taft and Lorraine, should be Proposed Land Uses: To reduce overcrowding designated for use as office/research. conditions and strengthen the City’s tax base, City’ of Wheaton 1999 Comprehensive Pla,i Update 50 Development Opportunities: North side: Total Acres 4.3 = Building Potential = 95,000 sq. ft. (2 floors) Lorraine Street to City Limit Existing Land Uses: Primarily commercial with limited office and single family residential, all located in the C3 commercial zoning district. Proposed Land Uses: Maintain existing commercial uses and encourage the redevelopment of underutilized properties on the north side of Roosevelt Road for office use. Development Opportunities: North side: Total Acres 2.3 = Building Potential 50,000 sq. ft. (2 floors) Corridor Improvement Plan “Views from the road” are important memories that establish a positive community image. The City has expressed concern over the appearance of East Roosevelt Road as the major entryway into Wheaton. As an important gateway to Wheaton, special attention is given to identifying public and private development improvements with this corridor. The Development Improvement Plan (See Exhibits 9 and 10, pp. 52, 53) describes specific improvements for the enhancement of the visual quality of East Roosevelt Road, and transitional areas between commercial and residential uses. Corridor improvements identified on the Development Improvement Plan are intended to guide capital improvement programming and redevelopment planning in a way that is more sympathetic to the character of adjacent uses and existing neighborhoods. City of Wheaton Q1999 Comprehensive Plan £ijdate 51 East Roosevelt Road Corridor Study Land Use Plan LEGEND ——— MUNIJPAL IOUNDARY HiiJJIWJ i wii ui__i — — PUNNING flOUNDARY JNflTh . OfHcE/REARGI U ——— coMM MULTIPt 1AMJLY NEGHIOlHOO PARK (PROPOSED) 1 STREET ClOSURE BUFIER YARD * REDEVELOPMENT OPPORTUNITY 0 15O 300 600 Exhibit 8 SQ East Roosevelt Road Corridor Study Development Improvement Plan East Section LEGEND —— — MUNICIPAL BOUNDARY — PlANNING BOUNDARY STREEr TREES V////J STREET CLOSURE • PEDESTRiAN SCI.LE THEME UGHTJNG AND BANNERS * GATEWAY IDENTITY MARKER A CORRIDOR MONUMENT MARKERS V’,\/ ESTABUSN LANDSCAPE BUFFER/SCREEN Itilitili EXIENDSIDEWALK XXXX PROHIBfl/CLOSE VEHICI.E ACCESS -i PARKING ‘1z NORTH IY 1OO 2OO 4oY —— Exhibitg 51 East Roosevelt Road Corridor Study Development Improvement Plan West Section LEGEND STREETTREES r/////A STREET QOSURE • PEDESTRIAN SCALE ThEME lIGHTING AND BANNERS A CRRIDOR MONUMENT MARKERS V\ ESTABLISH lANDSCAPE BUFFER/SCREEN Ilinhill EXTENDSIDEWALK PARKING NORTH f 75 130’ 300’ Exhib[t 10 52 Commercial Land Use Policy and North Gary Avenue commercial district, new General Commercial development will be the result Objective: The objective of the commercial of reuse and improvement of properties within the element of the Plan is to maintain and expand the North Main Street business district and along East range of business and shopping activities to meet Roosevelt Road. This Plan address specific the needs of Wheaton residents and to diversify the redevelopment opportunities within the North Main Citys tax base in attractive and convenient Street and East Roosevelt Road areas in the “Special locations designed to minimize impact on Focus Areas” section, page 43. residential areas. The Limited Commercial Office/Service areas are - Strategy: The Central Business District (within the intended to serve as transitional areas to adjacent Wheaton Central Planning Area) is the historic retail residential uses. They provide opportunities for and civic core of the City. Historically the largest small scale office and limited service uses to concentration of commercial uses existed in the respond to the demand for such spaces within the downtown area. This Plan acknowledges that while City. These areas should be limited to office and the Central Business District area should remain the service businesses not involved in retail sales. central place of the City, it will not be the dominant Limited office areas are also planned to permit the retailing location. conversion of homes along Roosevelt Road for a limited range of office uses, while requiring that the Community level shopping center developments residential character of the structure and site be such as Danada and the Target/Kohl’s Center have essentially maintained. become the dominant commercial areas of the City. For many practical reasons, the retail activity center Industrial Land Use Policy of the City has shifted from downtown to these shopping centers. Newer shopping centers, free Objective: The objective of the industrial standing businesses, and large discount retailers, component of the Plan is to maintain and enhance such as Target, are now the major source of the existing industrial sites to insure a stable tax base. City’s retail tax dollars. This does not, however, diminish the importance and potential success of Strategy: Wheaton has a very small industrial base, the downtown area as a speciality retail, civic, relegated to the area along the railroad tracks entertainment and service center. northwest of the downtown. According to officials from local industries, attracting new businesses is This Plan reaffirms the commitment of City officials difficult due to its remote location and incompatible to revitalize the Central Business District as the commuter train schedule. ACME’s current site center of civic and social life of Wheaton, with a provides room for expansion anticipated within the compliment of retail, service, office and residential next few years. While F.E. Wheaton lumber yard uses catering to the needs of residents, as well as has moved its headquarters out of Wheaton, this offering speciality shopping opportunities that draw company will maintain its present facility located from a wider region. (See Special Focus Areas” just north of the Manchester Bridge. With the section, p. 43) exception of potential reuse of the F.E. Wheaton site, no new sites are being considered for With the exception of limited redevelopment expansion of the City’s industrial base. opportunities at the Jewel Center on Geneva Road Citi’ of Wheaton 1999 comprehensive Plan Update 34 TO: RECORD Date: March 21, 2017 SUBJECT: March 18, 2017 Budget Workshop Those attending the March 13, 2017 City Council Budget Workshop included Mayor Gresk, Councilwoman Fitch, Councilman Prendiville, Councilman Rutledge, Councilman Saline, Councilman Scalzo. Councilman Suess arrived at 9:11 a.m. Also in attendance were City Manager Dzugan, Assistant City Manager Duguay, Director of Finance Lehnhardt, Director of Public Works Laoang, Public Works Superintendents, Director of HR Schulz, Fire Chief Schultz, Director of Planning and Economic Development Kozik, Director of Engineering Redman, Manager Schefske and Senior Engineer Lagvankar. The Workshop was held in the Council Chambers, Wheaton City Hall, 303 W. Wesley Street. The meeting began at 9:00 a.m. and concluded at 10:49 a.m. I. Review of 2017-2018 Draft Budget a. Municipal Band Director Lehnhardt stated the Band budget included a proposed 2% increase. In response to Councilman Prendiville’s question, Don Cavelli, President of the Band, stated that Band Conductor Bruce Moss is a world-class conductor. He has excellent contacts and connections which allows the band to bring in high level conductors to conduct. He stated that Wheaton’s Band is internationally known. He stated that Mr. Moss’ expenses are not compensated. Dottie Mackie, Chair of the Band Commission, thanked the Council for their continued support and stated that there are some new concepts being planned for this year. b. General Fund – Wireless Alarm Network Director Lehnhardt stated that this budget was increasing minimally; a .5% increase. c. Debt Service Fund Director Lehnhardt stated that this budget was increasing minimally; a 1% increase. d. Liability Insurance Fund Director Lehnhardt stated the proposed budget was down .4% from the previous year. e. Health Insurance Fund Director Lehnhardt stated the health insurance fund budget was up slightly (1.8%) from the previous year. He stated that the City’s experience over the past several years has beat the trend with an average PPO rate increase of 3.06% and HMO increase of 4.29%. He also stated that over the past week he received notification that the increases budgeted for next year (4% and 4.5% respectively) are expected to be lower. The City will receive the final percent increase in the next week or so. If these new numbers hold, Director Lehnhardt expects this to save the City an additional $35,000 in health insurance premium costs. In response to Councilman Suess’ question, Director Schulz shared the following health insurance premium rates that employee’s will pay starting July 1, 2017: With Without Wellness Wellness Participation Participation Non-union Tier 1* 11% 15% Fire union 11% 15% Non-union Tier 2 15% 19% Police Sergeants/Lts union N/A 12% Police Officers union N/A 12% * Hired prior to November 2012 f. Fire Pension Fund Director Lehnhardt stated that there was a slight (1.6%) increase in this fund’s budget for the next year. He stated that based on 4/30/2016 numbers, it was 68% funded. g. Police Pension Fund Director Lehnhardt stated that this fund was up 4.4% or $150,000 from last year. He stated that based on 4/30/2016 numbers, it was 59% funded. He stated that the Illinois Municipal Retirement Fund (IMRF) was funded at 89%. Councilman Suess stated that the City might consider reviewing other strategies for funding. City Manager Dzugan stated that the Police and Fire funds are managed at the local level while IMRF is managed by one entity. He stated that funding at a significantly higher level would be difficult as money would need to come from some other important project or fund. Councilman Rutledge suggested that we might consider getting closer to the 100% level; stating his concern regarding the 7.5% borrowing rate. We might borrow at a 2% rate. In response to Council’s questions and comments, City Manager Dzugan and Director Lehnhardt stated that it would be difficult to reach that level. h. Capital Projects Director Lehnhardt stated that we would be covering the majority of items listed under the Capital Projects heading through Assistant City Manager Duguay’s presentation. Assistant City Manager Duguay reviewed in general terms the reasons for developing a Capital Improvement Plan. He stated that it will be used as a 5-year planning tool to discuss long-term capital project planning, to assist in visualizing funding needs and for use as a management tool for scheduling and project management in general. He stated that the presentation would focus on the projects for the next fiscal year, and provided a quick review of the process of developing the Project Description Worksheet and vetting/clarifying projects presented by departments. Assistant City Manager Duguay provided an overview of the criterion used: Immediate Action Required and other criterion if immediate action was not warranted. He described the four reasons for Immediate Action: Mandate, Council Initiative, Leveraged Funds and Public Health and Safety and provided a list of these types of projects for the next fiscal year. Other criterion used: Maintains or Improves Standard of Service, Extent of Benefit, Efficiency of Service and Opportunity Cost. Assistant City Manager Duguay provided a list of studies conducted from the last several years and tied the studies to proposed CIP projects. He highlighted projects proposed as the result of recommendations from the following studies: Pavement Management Report (PCI), Sanitary Sewer, Lift Station Capital Improvement Study, Water Rate / Hydraulic Study, and Downtown Streetscape Strategic Plan. Assistant City Manager Duguay provide details on several projects in different areas/funds. He discussed the Road Program and described the Council’s goal of a 68 PCI rating. In order to achieve this rating, approximately 8 miles of new road needs to be completed which currently equates to $3.5 Million. This year, the proposed funding comes from Motor Fuel Tax funding, Capital Projects Fund and the Federal Aid to Urban Streets (FAUS) related work. Assistant City Manager Duguay also provided an overview of the road work that the Public Works department does. He stated that the money coming out of the General Fund for the roads would be for “Program Maintenance”; roads that are not failing, but need resurfacing. Another $224,000 is proposed for Public Works to overlay streets that are not currently on the road program in the immediate future, but need attention. Assistant City Manager Duguay discussed the Downtown Streetscape progress and the fact that only underground/utility work is expected to be completed this fiscal year with $2.21 Million being budgeted. He added that Primera will provide an informational meeting for downtown business owner (and anyone else interested) at 3 p.m. on April 3rd in the Council Chambers. Primera will also update the City Council at the April 10 Planning Session. Assistant City Manager Duguay stated that the Lift Station CIP conducted in 2016 recommended rehabilitation of the Lorraine/Eaton station. He stated that this was not considered as Immediate Action Required, but the project did score high using the criterion previously described. The cost of the project is $600,000. In response to Council question, Assistant City Manager Duguay stated that there is a work around during the period when the work is being done. Assistant City Manager Duguay described the need for work in the Materials Yard across from the Public Works main facility on Liberty Street. The City received notification from the IEPA that the lot in the NW corner of the yard needs to be fixed as salt run-off and other liquids are escaping into the nearby water source. He also described the curtains that will be placed on the salt bins to protect the salt from rain and therefore, help to eliminate run-off. He stated that this is a two-phase project with a Stormwater Control Structure and a portion of the concrete drive scheduled for replacement in the summer of 2018. In response to Council questions, Assistant City Manager Duguay stated that the yard was approximately 20 years old and that little work has been completed on it since it was built. He also stated that in the summer of 2018, staff would work with the Environmental Improvement Commission to make sure that the electronic recycling and any other event held in the yard are coordinated appropriately. He stated that the electronic recycling events still accept the recyclables as before, with the caveat that residents dropping off monitors must pay $25/$35 depending on the size of the monitor. Assistant City Manager Duguay stated that with the City’s curbside recycling program (Lakeshore Recycling Systems), it costs $25 for a monitor of any size. Assistant City Manager Duguay discussed the proposed changes in the monies allocated to the sidewalk programs. He described the Sidewalk Replacement Program which has evaluated City sidewalks and identified sidewalks with high differences between adjacent sidewalk pads (potential tripping hazard) over the last few years was completed this past summer. The budget proposes decreasing the amount allocated from $300,000 to $150,000 and placing $150,000 into a “new” sidewalk program along with the money previously being allocated to the 50/50 shared cost sidewalk program. This $225,000 along with $35,000 for developer contributions would provide $260,000 for the new program. The new program will not be a shared cost program, rather one where Staff determines criteria and prioritizes the need throughout the City. Assistant City Manager Duguay stated that staff may consider the option of allowing the 50/50 shared cost program for segments with a high priority. In response to Council questions, he stated that the Sidewalk Replacement Program will start over in the Southeast quadrant of the City this summer. After consultation with Director Redman, Assistant City Manager Duguay stated that $260,000 would provide approximately 4,000 linear feet of sidewalk. City Manager Dzugan stated that this program will make a difference over time. Assistant City Manager Duguay also described the projects out of the Water Fund, and provided details about the four most expensive projects: Meter Replacement Program, Water main replacements related to FAUS work and the regular Road Program, and replacement of the stand-by generator at Countryside. He stated that the eleven total projects in the Water Fund cost $3.01 Million. Senior Engineer Lagvankar provided an overview of the tracking tool that he drafted. The chart will assist him in following the project through the procurement process and into the execution phase and completion. He expects that it will help the Engineering Department track all projects. Director Lehnhardt provided a financial overview covering capital projects by type and fund, General Fund and Infrastructure Investment. He stated that in our state and country, that infrastructure was rated low. Councilman Suess asked how our infrastructure was rated, and City Manager Dzugan stated that while we do not have a specific “grade” for our infrastructure, he expects that we rank higher than average. Director Lehnhardt stated in response that some of the studies in recent years provide staff a guide for work needed. Director Lehnhardt described in detail the funding for the General Fund, showing a chart depicting generally flat revenues and operating costs rising at 2% annually. Regarding the money to be allocated for capital projects, the difference between revenues and operating costs, he stated that in FY2015/16, the difference was $4.5 Million while in FY2021/22, it is expected to decrease to $1 Million which is a concern. Starting in FY2019/20, the difference between revenues and operating costs is anticipated to be less than $3.5 Million, meaning that we could not cover the cost for the Road Program in today’s dollars. In response to Council questions, City Manager Dzugan stated that when staff comes to the City Council regarding the Downtown Streetscape, the discussion on funding will start there. He stated that there are similar financial challenges with the Enterprise Funds. Director Lehnhardt covered any remaining questions from the agenda items related to Capital Projects. i. Capital Projects Fund. There were no additional questions. ii. Motor Fuel Tax Fund. In response to Councilman Suess’ question, Director Lehnhardt stated that approximately $600,000 from the MFT fund balance was used this year as the fund had significant reserves. iii. TIF #2 Fund. There were no additional questions. iv. Water Fund. There were no additional questions. v. Sanitary Sewer Fund. There were no additional questions.  vi. Storm Sewer Fund. There were no additional questions. vii. Parking Fund. City Manager Dzugan stated that the Procurement Officer was in the process of receiving RFPs for a Parking Management Study which will provide a comprehensive look at our system and how commuters and shoppers pay for their parking. II. Other Budget Related Items City Manager Dzugan stated the need to continue the discussion for the Downtown Wheaton Association additional funding of $40,000. Councilwoman Fitch stated that she wanted to keep the funding level similar to what it has been in past years. $40,000 had originally been provide to “bridge the gap” in funding after the downturn in the economy. However, with the increase in assessed property values, staff anticipated that an additional $5,000 would be provided above what the DWA previously received. Based on this information, she suggested providing $35,000 to the DWA this year. Councilman Suess was not in favor of funding, but stated that if funding was to be made, that he would think that $35,000 was more appropriate. Councilmen Prendiville, Rutledge and Scalzo were in favor of funding the DWA at the $40,000 level. Mayor Gresk and Councilman Saline supported $35,000. After further discussion, the majority of the Council were in favor of providing $35,000 funding for the DWA. a. Comprehensive Plan Update - Roosevelt Road. Based on recent redevelopment along the Roosevelt Road corridor, City Manager Dzugan stated that there has been some question regarding the validity of the current Comprehensive Plan. His discussion focused on Special Focus Areas, the East Roosevelt Road Corridor Study and the Limited Commercial Designation-Office Service area. He stated that while there be some use to reevaluating the Plan, Director Kozik estimates that the cost would be $50,000 and could very likely provide similar recommendations. After some discussion between the City Manager and Council, it was decided to place $10,000 in the budget for a Market/Land Use review. b. Redevelopment Grant Program. City Manager Dzugan stated that TIF #1 expired on December 30, 2016. This grant program targeted retail businesses in the downtown completing expansion projects. City Manager Dzugan voiced concern funding this program since the money would come from the General Fund where previously it was funded out of TIF #1. He stated that this money will only be available to those businesses in TIF #1 and not any other business. Councilman Rutledge was not in favor of the funding, suggesting that it creates an inequity with other retail areas in Wheaton. Councilman Suess was not in favor of funding it, while Councilman Prendiville felt it should be continued given the past positive results. Councilwoman Fitch suggested funding it for one more year only. Councilman Scalzo, Mayor Gresk and Councilman Prendiville supported her suggestion that $20,000 be allocated in the General Fund budget for the grant program for this coming year only.  c. Adams Park. City Manager Dzugan stated that Adams Park does not have a formal landscape plan to guide the work completed by the Public Works department. He stated that work needs to be done to fix pavers, walkways and the fountain. The Council agreed that $25,000 be placed in the capital projects budget for engineering services. III. Public Comments None. IV. Council Questions/Comments Mayor Gresk stated that visitors from our sister city, Karlskoga, Sweeden would be in Wheaton on April 10. Twenty-six members of their hockey team will arrive and play a local hockey team. He stated that Terry Ash from the Sister City Commission is coordinating the visit. The Council thanked staff for the work putting together the budget presentation. V. Adjournment The Budget Workshop adjourned at 10:49 a.m. cc: Mayor & City Council City Manager City Clerk Department Heads